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Tue Dec 6 2011 12:59:16

Amazon Raises FBA Fulfillment Fees for European Sellers

By: Ina Steiner

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Amazon.com sent a notice to merchants in the UK today announcing a new fee structure effective March 1, 2012, for orders on Amazon.co.uk. An EcommerceBytes reader characterized the new fees as "huge FBA increases for small, non media products (percentage wise)."

Amazon.com had announced changes to the FBA program in the U.S. that go into effect on February 1, 2012, but the changes announced today affect UK sellers differently. Unlike in the U.S. where the Amazon.com doubled the Pick & Pack fee for oversized items, Amazon UK is actually lowering that fee.

Amazon is raising the Pick & Pack fee for media from 15 to 50 pence and is raising the Order Handling charge for non-media items from 25 to 40 pence. It's also increasing weight-handling charges and how it rounds when calculating outbound shipping weights.

Note that Amazon UK will not be changing the following fulfillment fees: FBA Storage, Zero Fee Fulfilment, the actual EFN fee, Removal, Disposal and Labeling and Multi-Channel Fulfilment fees.

In its letter to merchants today, Amazon wrote that since the launch of Fulfilment by Amazon (FBA) in the UK in 2007, it had made few adjustments to its fulfillment fees, "despite rising costs to us and to other fulfilment and transportation providers." The company went on to write, "We remain committed to providing low cost fulfilment services. At the same time, we must balance this with our commitment to provide the high level of service and the fast, free delivery our customers expect."

More information about the fees is available on this Amazon UK page. Sellers will have to wait before using Amazon UK's FBA fee calculator as it still uses the rates valid up to February 29, 2012 - Amazon said it would update the calculator soon to reflect the new rates.

Let us know what you think and if these changes affect you!




Comments (3) | Permalink

Readers Comments

Amazon Raises FBA Fulfillment Fees for European Sellers   Amazon Raises FBA Fulfillment Fees for European Sellers

by: anyone out there

Tue Dec 6 16:06:06 2011

Here we go again. Small sellers crying about fee increases. Cause ya all know its coming to America also.

Amazon Raises FBA Fulfillment Fees for European Sellers   Amazon Raises FBA Fulfillment Fees for European Sellers

by: Don'tTheyRealiseWeAreInARecession

Tue Dec 6 16:32:19 2011

I sell electronic accessories and I won't be sending anymore inventory into Amazon. My items are small and fall within the non media category, which will see a huge 300%+ "pick and pack" fee increase and 60%+ on "order handling".

Profit margins in this category are slender as it is - most sellers in this category go for a "pile it high sell it cheap", and will be forced to pull their inventory from the fulfilment centres.

I wondering if it's Amazon's intention to discourage these items in a favour of its own "basics" range.

Watch out Amazon US sellers.  You're probably next.  You have been warned.

Amazon Raises FBA Fulfillment Fees for European Sellers   Amazon Raises FBA Fulfillment Fees for European Sellers

by: Don'tTheyRealiseWeAreInARecession

Tue Dec 6 16:35:38 2011

Ok, panic over.  I just had another look at the chart and I can see my category is safe. For now.

I feel for you media sellers, though.



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